Analyst Richard Anderson commented, "In our view, AIV demonstrated an incremental level of confidence for 2017 versus most of its peers, including a reiteration of its previous view that same store NOI growth could be in the 4.75% range (equivalent to what it estimated a few quarters back). And with half of its capital dedicated to non-Class A price points, AIV appears somewhat insulated from the wave of supply pressure impacting the sector. The combination of renewal rents in the 4.5% range (i.e., above average), turnover running below 50%, and 2017 expense growth expected to remain manageably below 3%, should provide a measure of internal growth support. Hence, we see AIV as an interesting picture on a questionable canvas. The stock is up 7% year-to-date, so that did give us some initial pause in making this change, but the PT math we applied easily got us over that hump."

He added, "In some ways, AIV is a reincarnation of the Home Properties business model -- owning lower price-point assets and upgrading them through a dedicated redevelopment program. With the company’s ability to turn 1,500 vacant units to start the year, into 150 to end the year (a 90% drop), that should also resonate well with the 2017 outlook. And on top of all of that, a continued commitment to deleveraging looks likely to produce lower interest expense next year through debt reduction and refinancing activities. So, despite a long history that has had its ups and downs, we think AIV has the building blocks right now to achieve good growth at a discount during 2017."

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